This study investigates the efficacy of the Startup India Initiative (SII) in fostering entrepreneurial growth within the underdeveloped Kalyana Karnataka region. While central government policies are critical for stimulating nascent ecosystems, their effectiveness often hinges on regional implementation and structural financial readiness. Employing a mixed-methods approach focusing on awareness, utilization rates, and implementation challenges among 300 registered start-ups and examining official Stand Up India Scheme (SUIS) data, the research yields a nuanced finding: the SII has achieved significant administrative success in regulatory simplification and promoting awareness of non-financial benefits. However, a persistent financial conversion gap is driven by low institutional capacity at the local level and severe geographical risk aversion from external venture capital. Conversely, the related SUIS demonstrate remarkable success in mandated financial inclusion for women and reserved categories. The paper concludes that for central policies to achieve scaled, equitable regional development, they must be augmented by targeted institutional training and regional co-investment mechanisms designed to de-risk private capital.